TMT Prices Down Across Regions; SAIL Bets Big on Burnpur
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Primary TMT prices fell again across Delhi NCR, Mumbai, and Vizag due to sustained weak demand. Sellers continue cutting prices to stay competitive, while distributors maintain sufficient stock to avoid supply issues. Experts warn of further price corrections if demand doesn’t rebound soon, despite supply-side stability and strategic production cuts by manufacturers.
Key Takeaways
- TMT Prices Decline Further: Prices dropped by Rs 500/MT across key regions due to continued market weakness and competitive pricing pressures.
- Demand Sluggish Nationwide: Buyers remain cautious, delaying purchases as expectations of further price drops grow.
- Supply Side Steady: Distributors are well-stocked, with no immediate signs of supply disruption or logistical bottlenecks.
- SAIL Announces Mega Expansion: A Rs 45,810.92 crore IISCO plant project will boost capacity and shift focus to high-grade steel.
- More Price Cuts Likely: Experts say further reductions are possible if demand does not improve in the coming weeks.
Primary TMT Price
- Prices are as follows:
1. Ex-Mumbai: Rs. 53,500 - 54,000/mt
2. Ex-Delhi NCR: Rs.54,000 - 54,500/mt
3. Ex-Vizag: Rs. 51,000 - 51,500/mt - Note: Distributors across North, West and South have decreased the prices. Above pricing is based on the same.
Primary TMT Demand & Supply
- Aligned with broader market trends, pricing continued its downward trajectory, indicating ongoing weakness within the sector.
- From a supply perspective, sellers are responding to muted demand by adopting increasingly competitive pricing strategies.
- At the same time, distributors are maintaining sufficient inventory levels, thereby supporting consistent product availability and mitigating the risk of supply chain disruptions.
Primary TMT News
- SAIL has launched a Rs 45,810.92 crore expansion of its IISCO Steel Plant in Burnpur, set to become Bengal’s largest industrial project. Following environmental clearance on June 4, the company has started tendering for a new 4.6 million tonne plant, boosting total capacity to 7.1 mt by 2029.
- Unlike the existing unit that produces construction-grade bars and rods, the new facility will manufacture advanced steel for automobiles and consumer goods. The 1,165.58-hectare site will house modern units like a hot strip mill, PLTCM, CGL, CAL, and CCL.
- The project is expected to create over 12,500 jobs across construction and operations, while also catalysing growth in downstream industries in the Asansol-Durgapur region.
Expert Opinion
- Amid a noticeable decline in demand, producers have begun implementing more substantial price reductions on a selective basis. If this subdued demand persists, further price decreases may be anticipated in the coming week. The downturn is apparent across both primary and secondary markets, reflecting a broad-based contraction in purchasing activity and heightened caution among buyers.
- On the supply side, conditions remain stable. Distributors possess adequate inventory to satisfy current demand, with no immediate concerns regarding supply shortages or logistical disruptions. Concurrently, manufacturers are receiving fewer new orders, indicating that production levels are being closely managed in alignment with reduced demand, thereby minimizing the risk of excess inventory or operational disruptions.
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